Mumbai, March 5 -- The information technology (IT) sector is expected to experience moderated growth during the transition phase of a new technology cycle. According to a report by Morgan Stanley, spending on IT services may increase at a slower rate compared to the overall growth of the United States economy.

The report stated that the IT services spending multiplier to US nominal GDP growth could remain low during the transition period of the new technology cycle. This indicates that even if the US economy grows, the pace at which IT services spending rises may not match earlier technology cycles in the near term.

It stated "We think IT Services spend multiplier to US nominal GDP growth rate could remain low in the transition phase of...